1. Field of the Invention
The invention relates to the real-time system for providing in-store purchase discounts for predetermined products, without the use of coupons.
2. Brief Description of the Prior Art
Computer systems have been developed for either enhancing the ease of use of product discount coupons or eliminating the use of coupons altogether. The use of coupons has proliferated, as has the cost of coupon delivery to customers and the cost of tracking and accounting for the coupons.
U.S. Pat. No. 5,353,218 notes that discount coupons have long been distributed by manufacturers to merchandise their products and by retail stores to attract consumers to their particular store. Manufacturers and retailers both typically distribute coupons as free standing inserts in newspapers, hand-outs and mailers. The redemption rate of the coupons provided as free standing inserts, according to U.S. Pat. No. 5,353,218 was under 3 percent and decreasing, as of 1992. The processing of coupons is expensive and may, in some instances, negate the intended advantages of the coupon. Another problem is retailers intentionally, or inadvertently, accepting coupons although the customer has not purchased the required merchandise. The combination of the high cost of distribution of the coupons and consumer fraud, and the cost of reimbursing the retailer for accepting the coupon, renders the current system far less than perfect.
Accordingly, manufacturers have been searching for a system which is less prone to consumer fraud and less costly, while aggressively attracting consumers to their products.